BRUSSELS, March 23 (Xinhua) -- The European Commission said on Monday that the trade agreement between the European Union (EU) and four countries of Mercosur, a South American economic and political bloc, will be provisionally applied from May 1.
The Commission said it has notified Paraguay, the current holder of Mercosur's rotating presidency, completing the final procedural requirement for the deal's provisional application. EU Trade Commissioner Maros Sefcovic described the move as an important signal of the bloc's credibility as a global trading partner.
The EU reached a political agreement in December 2024 with four Mercosur countries - Argentina, Brazil, Paraguay and Uruguay - on a partnership expected to eliminate duties on more than 90 percent of goods traded between the two sides.
Despite this progress, the agreement has faced resistance within the EU. Farm groups and several member states have warned that increased access for Mercosur agricultural exports could expose European producers to unfair competition from lower-cost goods. Concerns have also been raised over imports such as beef, poultry and sugar, as well as environmental issues, including deforestation linked to agricultural expansion in parts of South America.
Nevertheless, the Council of the EU adopted the necessary decisions by qualified majority in January this year, authorizing the signing of both the EU-Mercosur Partnership Agreement and the Interim Trade Agreement, despite objections led by France.
The agreement still requires approval from the European Parliament before it can fully enter into force. However, during its January plenary session, Parliament voted to refer the deal to the Court of Justice of the EU for legal review, a move that could delay its full implementation.
The EU is Mercosur's second-largest trading partner in goods. In 2024, EU exports of goods to the bloc reached 57 billion euros (66.25 billion U.S. dollars). The EU also accounts for about a quarter of Mercosur's total trade in services, with exports to the region totaling 29 billion euros (33.71 billion dollars) in 2023.
